Apple (AAPL) Pre-Orders Imply Better Demand vs Last Year - BofA Securities

BofA Securities analyst Wamsi Mohan reiterated a Neutral rating and $140.00 price target on Apple (NASDAQ: AAPL) noting that iPhone ship dates on various carrier websites indicates that in the U.S., ship dates for the iPhone 12 are roughly similar compared to last year at this point in the pre-order cycle. In particular, the availability at Apple stores is significantly better than carrier websites, where most models are available with no delays. In China, the reverse is true. Ship dates for iPhone 11 were roughly averaging at 7-10 days, current shipping estimates for iPhone 12 in China are at 2-3 weeks for most configurations.

The analyst stated "The data over the first few days of pre-orders implies better initial demand versus last year (already reflected in our +15% y/y growth or 27mn more iPhones in F21 at 214mn units). While we do not know how inventory and allocation currently are impacting these lead times, currently we do not expect over 220mn units in F21, which we calculate is needed to drive material upside to our estimates. Net-net, demand in F21 is likely consistent with F20 pre pandemic levels of around 210mn iPhones".

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $117.50 yesterday.

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